Here is the income statement for Myers, Inc. MYERS, INC. Income Statement For the Year Ended December
Question:
Here is the income statement for Myers, Inc.
MYERS, INC.
Income Statement
For the Year Ended December 31, 2017
Sales revenue ................................................................... $400,000
Cost of goods sold .............................................................230,000
Gross profit .....................................................................170,000
Expenses (including $16,000 interest and $24,000 income taxes) ...... 98,000
Net income .....................................................................$72,000
Additional information
1. Common stock outstanding January 1, 2017, was 32,000 shares, and 40,000 shares were outstanding at December 31, 2017.
2. The market price of Myers stock was $14 in 2017.
3. Cash dividends of $21,000 were paid, $5,000 of which were to preferred stockholders.
Instructions
Compute the following measures for 2017.
(a) Earnings per share.
(c) Payout ratio.
(b) Price-earnings ratio.
(d) Times interest earned
Common StockCommon stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
Step by Step Answer:
Accounting Tools for Business Decision Making
ISBN: 978-1118096895
6th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso